So you’ve found a piece of real estate that you like and put in a good offer. Sound like the deal is about to go through, right? – Wrong! The home appraisal process has just begun. Having your offer accepted doesn’t take you across the finish line just yet. There are still a lot of things that you need to look into and understand. It’s best to talk to your real estate agent in Myrtle Beach about this and dig into the details.
Your prospective home still needs to go through a comprehensive appraisal even after you’ve applied for a mortgage. If the appraisal isn’t favorable, that could spell the end for the deal. It isn’t the most pleasant experience. You should always get to know the process so you would know what to expect. Read on and we’ll demystify what goes behind home appraisal.
Real Estate Agent Tips
Lenders are in it too!
So, you and the seller have settled on a price. Does this mean the deal is closed? Is it already a done deal? Unfortunately, it’s not quite over yet. It’s only just starting. The lenders will be appraising the value of the property too. When you’re buying a home in Myrtle Beach, you’re not only dealing with one or two entities. You’ll be doing transactions with a number of people before everything will be finished. Lenders are among them. After all, your investment is theirs as well. For you to be able to get a mortgage, the lenders must appraise the value of the home. The property will serve as collateral. If you don’t manage to pay your mortgage, the property will be foreclosed and will be sold to get their money back plus interest.
Appraisers are on the lender’s side, not yours
In the process of buying a home, you’ll be paying for the appraisal of the property of your choice. The appraisal process will set you back anywhere from $300 to $400. However, paying any amount does not mean that you’ll get special favors from the appraiser and get a lower appraisal for the home. Nobody is allowed to put any pressure on the appraisers just to get to a certain mark. In fact, it is illegal to do so.
Home appraisal adds protection to the buyer
You read that right. Although appraisers will not help you get a home for the price that you want, they will give you the protection that you need. Home appraisal isn’t only there to give clear value to your prospective home, it’s also a way for you not to end up with a bad deal. For example, the agreed amount between you and the seller is $125,000. However, the appraisal came in at just $105,000. That leaves a $20,000 deficit.
There are a couple of things that buyers can do at this point. Do note that appraisals coming in low isn’t a bad thing – at least not entirely. Here are the steps that a homebuyer could take:
The buyer could walk away from the deal and find another property
• Continue with the deal by coming up with the difference or have the seller cover it
• Get a second opinion from another appraiser (although this isn’t always the best option)
When you do seek another opinion, you need to consider that the results may still come in the same. Do make sure that you consult real estate agents in Myrtle Beach first. Talk with your real estate agent to know more about the process.
If you’re buying a home, there are a few things you need to remember. These will help you make an informed decision before you make a huge investment
Tips When Buying a Home
Keep your money where it is
It is not a wise decision to make large purchases or to move your money for more than three to six months prior to purchasing a home. Credit scores are not something you should take lightly. Lenders want to see that your credit history is solid and that you are reliable. They also need a full paper trail in order to get the best loan for you. Lenders will not approve loans if you have too many credit cards, accumulate excessive debt, or purchase large-ticket items.
Get Pre-Approved For Your Home Loan
It is important to know the difference between pre-qualified buyers and those who have pre-approved mortgages. Anyone can be pre-qualified for loans. Pre-approval means that a lender has reviewed all your financial information to determine how much money they can lend you. Pre-approval will help you save time and money so that you don’t waste your time looking at houses that you cannot afford. Pre-approval allows you to compare rates and find the best deal.
Avoid Border Disputes
A survey of your property is essential in order to know what you are buying. It may be possible to avoid a dispute with neighbors by knowing exactly where your property lines are.
Don’t try to predict the market
Do not obsess about trying to predict the market or when the best time is to buy. It is impossible to predict the housing market. When you are able to afford your dream house, it is the best time to purchase. Real estate is always changing. It goes up, it drops, and then it goes back up. You’ll likely miss out if you wait for the right time.
Bigger isn’t always better
Everybody is attracted to the most beautiful, largest house on the block. When it comes to houses, bigger is not always better. Real estate agents have an old saying that you shouldn’t buy “the biggest and best house on the block”. A big house appeals to a small number of people who will not be able to buy it again. Your home will only increase in value if it is comparable to the houses around it.
You are Buying a Home – Not Dating It
It is a mistake to buy a house solely on your emotions. You might make poor financial decisions if you fall in love. Your emotions and your instincts are two different things. You should follow your instincts to recognize that you are getting a great home at a great price. You shouldn’t be obsessed with the backyard or paint color. This is an investment so be calm and wise.
Inspection is a Must
Hiring a home inspector before you buy a home is a must. This will cost you about $200, but it could save you thousands. The sole responsibility of a home inspector is to give you information that will help you make an informed decision about whether to purchase the house or not. This is the only way to obtain an impartial third-party opinion. You can use the inspection report to lower the home’s price if there are any problems.
Talk to Neighbors
Get the lay of the land before you buy. Many homebuyers are devastated when they find the wrong neighborhood and feel they have lost their dream home. To see the happenings in the area, drive by the house at any hour of the day. To make sure that it’s something you can handle on a daily basis, do your daily commute to and from the house. Locate the closest grocery store or other services. Even if you don’t have children, it is important to research schools as they can impact the value of your house.
Buying a home is a major financial and personal decision for many. You can make it happen with a little knowledge. All it takes is three steps: Get ready to go, get set, and get ready!
Tips For Buying A Home
1. Get ready
Are you ready to become a homeowner? If you are motivated, you can easily find the time and energy required to buy your first home. Money is not the only thing that matters. You might not find it as daunting as you think. When you have a budget, you will know how much you can borrow and what you can afford. Then you are on your way to homeownership. These are the three steps to get you started on your journey to homeownership.
Be sure you’re credit-worthy
Your credit score is the first thing you need to know. Your credit score is a key factor in determining the amount you can borrow and what interest rate you might be eligible for on your mortgage. Make sure your credit scores are as high as they can be before you apply for a mortgage. A lack of credit history and high credit card balances may make it difficult for someone just starting out. Credit cards and unsecure debt should be paid first. Student loans and car loans are usually less problematic. This can be a huge advantage when you establish credit history by paying your student loans on time. The amount of down payment that you will need to make can be affected by your credit score.
Establish a Budget
Next, calculate how much you can borrow and what you will pay each month for a mortgage. You should create a budget that is based on your income, even if you expect an increase, and all your monthly expenses including student loans, car payments, and health insurance. Understanding that monthly mortgage payments are only a part of monthly housing expenses is important. Additional costs such as homeowners insurance, maintenance, utilities, and property taxes will need to be estimated. These will only be estimates until you find your dream home. However, accounting for these costs first will allow you to set a realistic price range.
Make a down payment
Consider your down payment. You should consider paying a downpayment of 20% of your total purchase price if you can. There are also more affordable options, which can be as low as 3.5%. The options available to you will depend on your financial situation. Consider the closing costs. You will usually pay the first year’s homeowners insurance one year in advance. The closing costs include title insurance, title fees and recording fees as well as loan origination fees. To find out how much down payment you can afford, consult a mortgage advisor as soon as possible.
2. Get set
Once you have a good idea of your budget and your borrowing power, it’s time to start making your next moves.
Get a mortgage preapproval
The first step to applying for a mortgage is to contact a lender. After you have done your budgeting, you will need to be preapproved for a mortgage. You could lose your chance of buying the house of your dreams if you wait to apply for a mortgage until you have found it. You can get a mortgage preapproval to determine how much house you can afford, what your interest rate is and which loan programs you are eligible for. Lenders will only give you the amount you can afford to make monthly payments towards your mortgage. This will help you to set your price range and speed up the mortgage application process. You can then make an offer quickly. Before you start this process, take the time to gather all of your financial documents (such as tax returns) and track mortgage rates. This will allow you to spot a good deal and get the best loan possible.
Select a mortgage lender
Find the best way to get a mortgage and secure the right option for you. Consider your current credit score, time frame, and type of home.
Find the Right House for You
Check the internet to find the right home for you. Many real estate websites will connect you with the brokers who can arrange times for you to see the homes that interest you. You will need to trust your real estate agent to guide and teach you as a first-time buyer. They will be familiar with the area and can help you negotiate a fair price for your house.
This is the right time to move forward. After you have found the house that suits your needs, it is time to meet with your broker and make an offer.
Make an Offer
Once you have found the perfect property, make an offer to purchase it. Your real estate agent in Myrtle Beach can help you decide what price to offer. To help you make an acceptable offer, they will compile sales data and compare other local property values. The agent will also prepare an offer letter that you can submit to the seller or seller’s representative.
Closing On Your First Home
A closing date will be set once this has been completed. The closing is usually scheduled within one month of your offer being accepted. However, it may take longer to schedule the closing (which your agent can help you with). To ensure that all fees and upfront expenses are covered, it’s a good idea to consult your mortgage broker as well as your realtor before closing.
Buying a house is a wonderful experience that needs careful planning. Committing a mistake when buying a home can cause you to make costly mistakes down the road. That’s why you need a buyer’s agent.
A majority of houses being sold have an agent who represents the seller. This agent is generally called a listing agent or a sellers agent. Listing agents are responsible for protecting the best interest of the seller.
How can a buyer make sure that their best interests are prioritized? A buyers agent Myrtle Beach is an easy method of protecting your best interests as a home buyer. It is important to hire a buyer agent when buying a home.
A buyers agent will ensure that the buyer receives the best possible deal because they are looking after their best interests. Here are 10 top reasons you should hire a buyer agent to help with your house purchase. These 10 factors will make you aware that representation is necessary when purchasing a home.
10 Reasons Why You Need A Buyers Agent
1.) Hiring A Buyers Agent is Free
A buyer agent is a free service that can be very useful in buying a home. It is rare that a buyer agent costs more than it does to be hired.
A buyer may have to pay a commission to a buyer’s representative if they purchase a for-sale by owner (FSBO). Even though it is quite rare for the FSBOs to refuse to pay the commission, this could still happen. This is why it is important to know the possibility of a FSBO being purchased.
A 99.9% chance of hiring a buyer agent is free, so it makes sense to have one to help you with the house purchase. However, it is important that you do not just choose any buyer agent. When buying a home in Myrtle Beach, there are some things that you can expect from your real estate agent.
When you’re hiring a buyers agent, you have to take into account that they would protect your interests in one of the biggest and most significant transactions you will ever make.
2.) A buyer’s agent knows what to look for when viewing houses
No matter if you are buying your first or tenth house, there is a good chance you won’t be looking at houses every day. An experienced buyer agent will be physically visiting dozens of houses every week. A buyer agent is a great option for anyone looking to buy a house. They know the best things to look at when looking at houses.
You should be alert to certain warning signs when purchasing a home. A skilled buyer agent will quickly spot potential issues in a property.
A potential problem with the foundation of a house was discovered by the seller while they were selling it. It was my responsibility as the buyer’s representative to highlight potential problems and recommend that the house be further evaluated by an architect. The potential defect was discovered by the buyers who were delighted to hear about it.
This is just one example of the things an expert buyer agent will identify in a house after viewing it. A buyer agent may also be able to identify the following common signs:
3.) A buyer’s agent understands the local real estate market.
Every area is unique. There are many factors that can affect real estate markets. They may differ between towns and neighborhoods. When buying a home, it is important to understand your local market.
There are many factors that make real estate markets different. Another reason you should hire a buyer agent to help with the purchase of a home is the fact they are familiar with the market. When it comes time to offer on a property, a buyer agent that is familiar with the market will be a big help.
As a buyer agent, it is recommended because they are familiar with the real estate market in your local area. If you submit an offer that’s not in line with the market, it could cost you thousands of money.
4.) A Buyers Agent Can Help Evaluate & Secure Financing
Real estate financing can seem complicated and confusing. A real estate agent can help you evaluate and secure the right financing to suit your needs.
Buyer agents can assist you in navigating the many financing options available and helping you choose which mortgage type is right for you. A buyer agent can help you navigate the different options and assist you in securing financing via a broker.
When you are looking for financing, it is important that you consider local mortgage companies. Local mortgage brokers are familiar with the requirements for residential real estate transactions, as well as any applicable laws and regulations.
5.) A Buyers Agent would coordinate open houses
A buyers agent will be responsible for the coordination and organization of open houses. This task is often one of the most neglected. It could be confusing and difficult to coordinate showings.
It’s a great idea to have a buyer agent help you find the right house. They will coordinate viewings for potential buyers. A buyer’s house search can lead to multiple showings being coordinated in different cities at different times.
A buyers agent will help you view any potential property if you are interested in buying a house. It may take a few phone calls to figure out how best to show properties and make sure you have all the relevant information.
6.) A buyer’s agent will know how to write real estate contracts
It’s not likely that you are familiar enough with navigating a real-estate contract, even if this is your 10th home. A buyer agent is a person who has a deep understanding of the details and nuances of real estate contracts.
A real estate contract has many components. It is important to have an expert guide you. Consider the following real estate clauses when negotiating a purchase deal. There are also deadlines and important details that must be included in any contract.
An experienced buyer agent can help you write the contract to present yourself in the best way possible to a seller. Poorly written contracts or those with blank or missing areas are common reasons why buyers reject an offer to buy a house.
7.) A buyer’s agent will have access to experienced professionals needed during a transaction
There are many professionals needed during a real-estate transaction. A home inspector, mortgage originator, as well as a real estate lawyer are all needed when you purchase a house.
A buyers agent is a professional who would recommend experts to you when you buy a house. A seasoned buyer agent can refer you to many mortgage companies and inspection firms.
A buyers agent will likely recommend professionals who provide high-quality service. They would be interested in your best interests during the sale of a home. When interviewing buyers agents, it is important to find out if they have any recommendations for service providers. A seasoned buyer agent will be able offer multiple recommendations for each professional type.
8.) A buyer’s agent will be your negotiator
The most common question about purchasing a home is how much should you offer. The biggest benefit of hiring a buyer agent to represent you in negotiations is their ability to negotiate on your behalf.
A top-notch negotiator in real estate can make a difference depending on where you live and what the market is like.
If you are trying to buy a house that is too expensive, then your agents must be familiar with the process. It could include more than just a market analysis in order to prove the house’s overprice or structuring the contracts to appeal to the sellers.
You will need to negotiate the terms of your purchase if you do not hire a buyer agent. If you’re looking to buy a house that is too expensive, chances are the majority of buyers won’t be able to negotiate a deal.
9.) A buyer’s agent will keep the transaction on schedule
Real estate transactions can be delayed, but that doesn’t make them unacceptable. Any delay in real estate transactions can be frustrating for all involved, particularly the buyer and seller.
Hiring a buyer agent will greatly improve the likelihood that your real-estate transaction runs on time. Hiring a top buyer agent can help you avoid delays in closing real estate transactions.
The buyers agent ensures that the contract deadlines, including a written commitment to a mortgage, are met. Closing delays can also be caused by delays in ordering appraisals or in the completion of an instrument survey. A well-organized buyer agent will ensure that these delays can be avoided.
10.) A buyer’s agent can be your emotional filter
A house purchase can be very emotionally charged and could lead to a lot of stress for the buyer. A buyers agent is a great option for those looking to buy a house. They can also act as an emotional filter.
A buyers agent doesn’t have an emotional attachment to the property that you are interested in. This can prevent you from making rash and emotional decisions. A buyer ultimately makes the decision. However, a buyers agent helps to weigh all the pros and cons of potential properties.
A buyer agent is a person who helps you find the right house.
A buyers agent is a valuable asset that you can’t afford to ignore. A buyer agent is a professional who will look after your interests in one of the most important purchases that you ever make.
Call Full Potential Real Estate, LLC now if you are looking for professional help when buying a home.
You may long to own your first or next home, no matter how small or cramped you are. You may feel that the search for a home is a daunting task. The truth is that buying a home doesn’t need to take as long as you think. Let’s look at the time it will take.
What is the average time it takes to buy a house?
You could be moving into a new home within 5-6 months, depending on where you live and your finances. If you buy a home with cash, it will take less time. If you are buying while selling your existing home, it might take longer.
You can also take steps to reduce the time you spend waiting. The best news is that you can do most work from your couch.
Let’s look at how to buy a house. First, let’s take a look at what you need to do before you start looking for a house. This will ensure that the process is smooth and efficient.
Before you start looking for your next home, you can prepare yourself to house hunt to reduce the time and effort required to buy your next home.
Organize your finances
Before you go to an open house and ask for a mortgage, make sure you take a hard look at your financial situation. This step can be completed in as little as a day depending on how your finances are managed.
Find out where you want to live
As you work to sort out your financial history, consider where you would like to live. Do your research and think about your lifestyle. Ask your family and friends what they love and dislike about their current location.
Timeline for Buying a House
You can expect to spend approximately 6 months searching for a home, getting mortgage approval, and closing on the property. However, this time frame can change depending on your personal circumstances.
Step 1: Apply for a Mortgage Pre-approval
Before you begin looking for a home, you will need to get pre-approval. This usually takes 1-2 weeks. When you apply for pre-approval, your lender will verify your income and check your credit history to determine the amount of home you can afford. The lender will then send you a letter with a formal estimate of the amount of loan they are willing to give you.
Pre-approval letters are a sign that you are serious about purchasing a home. Sellers and agents know that you will not have difficulty getting a loan once you find the right property. When you find the perfect home, your pre-approval letter will help you strengthen your offer.
Pre-Approval is usually quick and easy. You can apply online for a loan from many lenders in as little time as one afternoon. You should answer all questions of your lender, provide all documentation, and respond promptly to emails and phone calls. This will ensure that you get pre-approved as quickly as possible.
Step 2: Buy a Home
The hunt for the perfect home is often the longest part of the purchasing process. It will take you around three months to find the perfect property. You can save time and avoid looking at properties that don’t suit your needs. You don’t have to rush. It is not a good idea to rush into debt to buy a house you don’t like.
For a faster process, work with an agent
A Myrtle Beach real estate agent is the best way to speed up your home buying process. Local professionals are familiar with the market and can help you make the right decisions when buying a home. A real estate agent will help you narrow down your search and find homes within your budget. A real estate agent can help you make a strong offer, speed up negotiations, and even assist with your closing.
Step 3: Submit An Offer And Negotiate
It can take up to two months to submit an offer and follow through. When you have found the perfect home, your agent can help you submit an offer. A letter of offer outlines the terms of the sale. It includes information such as the price, closing costs and repairs that you require before closing. The job of writing an offer will be handled by your real estate agent.
These negotiations can take a while, as you might imagine. To speed up negotiations, ask your agent to contact the sellers’ or buyers’ agent. You might get valuable information from your agent that will allow you to customize your offer and obtain a quicker acceptance.
Step 4: Prepare for Closing
When you have reached an agreement with your sellers, your mortgage loan will be closed. Most lenders require that you finalize your loan details within 30 to 45 days. This is to ensure your home meets the minimum requirements of your loan. During this time, your lender will schedule an appraisal. Before closing, you should order a home inspection.
Step 5: Close on your Loan (About 1 Week).
Once your appraisal is cleared and your lender has finished underwriting your loan, it’s time for you to close. First, your lender will issue you a Closing Disclosure. This document will outline the final terms of your loan including your APR, and what you have to pay in closing costs.
You should carefully read the Closing Disclosure. Your lender must give you at most 3 days to review your Closing Disclosure prior to the closing meeting.
Your lender will arrange a closing meeting after the 3-day deadline has expired. After the 3-day window has expired, your lender will schedule a closing meeting. You’ll sign your loan papers and pay your down payment. Once you have taken control of your property, your lender will notify you. Any last-minute questions regarding your loan agreement can be asked.
After you close the closing meeting, you are officially a homeowner.
You could be in a new home sooner than you think
A majority of buyers expect to spend approximately 6 months buying a home. After you submit your application, it will take approximately a week for you to receive your mortgage pre approval. You’ll also spend about 3 months looking at properties. You may need to negotiate a deal with the seller for anywhere from 1-2 months depending on where you live. It will take approximately a month for the lender to approve your loan, and another week to schedule a closing appointment.
It is important to remember that buying a house is an individual process. While some people spend less time buying a house, others spend more time going through the steps. If you aren’t sure you have the time or patience to commit to a 6-month timeline, don’t rush.
When you’re ready to purchase a home, Call Full Potential Real Estate, LLC for a great home buying experience!
It is your dream to own your own home. But, when you go window shopping, you feel afraid and can’t move forward. We understand. We understand that buying a home can be one of the most important decisions in your life. Home buyers share one thing in common: they fear something. These fears are often just fantasies.
Top concerns for home buyers and ways to address them
I Can’t Buy a Myrtle Beach Home
Many home buyers fear that all their savings will be used to buy a new house. They won’t be able to travel, buy new clothes or enjoy delicious food again. You are unlikely to spend all your savings, but that depends on where and what you want to buy a home. There are many loan programs available today that can help first-time homebuyers with their down payment assistance. You don’t necessarily need to have a severed leg or arm in order to obtain a mortgage. Contacting a loan officer is the best way to determine if you have the financial means to purchase a home. A home affordability calculator online allows you to input your income and debts so that you can determine how much you can afford.
I might not be able to buy the home I like
Some home buyers might think that buying a home will lead to them living in a hellish place with lots of problems because of the current economic situation forces them to buy a home that is not suitable. The interest rates are very low and homeowners can get a great deal while paying less over the life of their loan. Many properties that are worth less than their value are also available and may be a good option for first time home buyers.
What if I buy a money pit?
You may have seen the movie in which Tom Hanks’ life and bank accounts were destroyed by a rapidly falling house. This is just a movie, and not all houses are money pits. There are several things you can do to protect your investment and yourself, even if there are potential problems like a leaky pipe. Hire a professional home inspector before you purchase anything. They will inspect the property for any signs of water damage, as well as electrical and plumbing problems. You can also get recommendations from a home inspector on possible repair costs. This will help you negotiate a house’s price.
I am concerned that I might overspend. It might seem that the asking price for a house is a lot. It is important to remember that the asking price for a home is what sellers want. Sometimes, they get much more than they expected. A real estate agent can help you make a realistic offer. Myrtle Beach’s real estate agents are well-versed in the market and can provide historical data and comps to help you make an informed decision. You can search for homes that have recently sold in your area to get an idea of the current market prices.
It’s safer to rent
Renting doesn’t mean you have to live in one place like homeownership. Rent money disappears, and you won’t be able to build equity over time. To determine if renting or buying a home in your local area is best, you can use a rent-versus-buy calculator.
If you’re thinking about buying a home in Myrtle Beach, call Full Potential Real Estate.
Buying a home can be a very exciting experience especially for first time buyers. However, it could also be a daunting task especially if you don’t know what you are doing. The excitement that you have felt initially could easily turn into regret after making serious often costly mistakes when choosing a home in Myrtle Beach. So, here is a list of the common errors that you need to avoid at all cost when buying a home in Myrtle Beach.
Refusing To Confide In A Pro
One of the most common mistakes that you need to avoid is not confiding in a professional like a real estate agent. In most cases, home buyers withhold information from their advisers because of fear, irrational belief, and lack of confidence. Don’t forget that these professionals, if chosen correctly, can represent your best interest. They are the best people to turn to especially if you are having doubts about the property transaction that you are intending to make. Your realtor, for instance, can help you walk through anxieties and help determine if the deal is worth closing or scrapping.
Changing Financial Pictures Prior To Closing
As a homebuyer, you should remember not to buy anything using your credit card when you have filed a loan application because you might end up not being qualified. Don’t buy any of these things: automobiles, refrigerators, dryers, washers, costly computers or electronics, and home furniture. Keep in mind that making even the slightest alterations can cause your loan application to be denied and forfeit your chance of getting that home that you have always desired.
Purchasing The Wrong Property
As a potential homebuyer, you need to come up with a list of priorities and your objectives as you look for your desired property. Find out what features and benefits you consider as the most important. Don’t forget to review this list because disregarding it could lead to bigger problems in the long run.
You should also avoid purchasing a Myrtle Beach home that is above your pay grade. Do not be lured into the trap of having to pay a monthly mortgage that you cannot afford. You have to understand the costs of owning the property you want and make sure that your income can cover it as well as the lifestyle that you wish to want. Be realistic. You would not want to live in your dream home but have to face financial hardships because nearly all of your monthly salary goes to covering the purchase.
Buying a home is a very important decision and a significant financial investment. Invest time into learning everything before agreeing and signing anything if you wish to avoid stress and surprises. By working with a real estate agent, you will understand all aspects of the purchase and make sure that you purchase the home that you have wanted without having to worry about any problems in the future.
Call Full Potential Real Estate, LLC if you need help in purchasing your first home.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577